Pennsylvania Governor Josh Shapiro filed a request with the state Public Utility Commission on Thursday to intervene in a proceeding that would shift grid infrastructure costs onto data center operators rather than spreading them across PPL Electric Utilities' broader customer base. In a statement accompanying the filing, Shapiro argued that residents of Pennsylvania should not face steeper electricity bills as a consequence of data center development.
A petition filed with the commission calls for PPL to establish a dedicated rate structure and service category tailored to large-scale data center operations. Under that arrangement, facilities would bear the cost of any transmission infrastructure their operations require and accept supply on an interruptible basis, meaning the grid operator would retain the ability to curtail their load ahead of other customers whenever a supply shortfall arises.
Among the filing's demands is a provision that data centers absorb their portion of expenses tied to backup power capacity programs run by regional grid operator PJM Interconnection.
A rate category covering high-volume consumers is already part of PPL's existing tariff structure. Regulatory approval of that arrangement came through a rate-case settlement that PPL reached with the commission in June. Beginning in 2027, data centers and other large new power consumers will contribute $11 million annually toward assistance programs for low-income customers, provided they have locked in decade-long service agreements under the arrangement.
According to the consumer advocate, Rate LP-6 — the tariff structure at issue — falls short of shielding existing PPL customers from financial exposure and service-reliability concerns tied to data centers entering the utility's network. Under the terms described in the complaint, a provision within the settlement gave both parties the right to revisit the rate once the commission had published its final model tariff covering large customers, a step the commission has since taken.
According to the petition filed under Shapiro's name, a preliminary review led the administration to conclude that PPL's existing framework does not adequately account for the rising number of data centers now seeking connections to its grid. The filing noted that a formal stance on the matter had yet to be finalised by the administration at the time of submission.
Two grounds for intervention are laid out in the petition. One is serving the public interest. The other is that government agencies hold PPL customer status, leaving their interests without a dedicated advocate among the parties involved.
Approval of the petition by the commission would elevate Shapiro to full party standing, opening the door for his administration to introduce evidence and put forward legal arguments. According to the governor's office, no occupant of that post had stepped into a commission proceeding for at least 15 years prior to this action.
The filing arrived shortly after Shapiro signed an executive order on Aug. 18. Under that directive, Mark Szybist — appointed as special counsel for energy affordability — was tasked with coordinating with the commission on preventing data centers from passing their costs onto the broader ratepayer base. Szybist's name appeared among the signatories on the petition.
Under the terms of the filing, PPL had a 20-day window to submit a written response. In a statement issued Friday, PPL Electric indicated that expenses tied to large-load customer projects should be borne by those customers themselves. The company said it had pursued regulatory channels and secured the only large-load tariff in the state to receive commission backing.
The utility also put forward a separate filing — the Consumer Protection Transmission Rider — designed to shield non-participating customers from absorbing the costs tied to broader network upgrades. A company spokesperson expressed support for the governor's attention to those customer protections while noting the matter would continue through proceedings before the Pennsylvania Public Utility Commission.
On Nov. 3, Shapiro will face Republican state Treasurer Stacy Garrity in a gubernatorial election. In a statement to a broadcast outlet, Matt Beynon — speaking on behalf of the Garrity campaign — attributed rising electricity costs, questions over water usage, and unease about development on residential land and farmland to policies under Shapiro that expanded data center construction throughout the state. Beynon also stated that data center interests based outside Pennsylvania had directed close to $6 million toward Shapiro's campaign fund, according to campaign finance disclosures. No response from Shapiro's campaign had been received before publication addressing Beynon's statement.
